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☆ Republicans' plan to fund Israel by cutting IRS spending would cost taxpayers billions and add to the national deficit
▼ + stars: | 2023-11-01 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

Republicans proposed giving Israel $14 billion, attached to $14 billion in IRS funding cuts. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementAdvertisementRepublicans want to give Israel $14.3 billion — but only if they can cut the same amount from the IRS. It's insulting that the hard right is openly trying to exploit the crisis in Israel to try and reward the ultra-rich." "Bifurcating Israel security assistance from the other priorities in the national security supplemental will have global consequences."

Persons: —, Mike Johnson's, Joe Biden, Johnson, Ashley Schapitl, Daniel Werfel, Kevin McCarthy, Schapitl, Chuck Schumer Organizations: Israel, Office, Senate Democrats, White, Service, IRS, Palestinian, Hamas, Democrats, Internal Revenue, Republicans, Washington Post, GOP, Senate, White House, Management, OMB Locations: Israel

Mr. Johnson, the Louisiana Republican who has personally voted against sending military aid to Kyiv, released a $14 billion aid bill for Israel on Monday. But Mr. Johnson spurned that request, in an acknowledgment of how toxic funding for Ukraine has become among Republicans. agents,” Mr. Johnson said. “Instead of advancing a serious proposal to defend Israel, defend Ukraine and provide humanitarian aid, this House G.O.P. My guess is you can get Ukraine aid passed, probably as a stand-alone bill here.

Persons: Mike Johnson’s, Biden, Johnson, Biden’s, Fox News’s, ” Mr, Chuck Schumer, Mr, Kevin McCarthy, Thomas Massie of, Marjorie Taylor Greene, “, ’, Ms, Greene, —, Steven Ellis, MacGuineas, Mitch McConnell of, ”, Schumer, McConnell, Oksana Markarova, I’ve, Johnson’s, Susan Collins of, “ I’m, Josh Hawley, Let’s, Hawley, McConnell “, let’s, Patty Murray, Antony J, Blinken, ” Zach Montague Organizations: Senate, Louisiana Republican, Internal Revenue Service, Israel, Fox, Democratic, Republicans, United, Taxpayers, Federal Budget, Biden, Republican, University of Louisville, Ukraine, Mr Locations: Israel, Ukraine, Louisiana, Kyiv, Taiwan, United States, New York, Marjorie Taylor Greene of Georgia, Mitch McConnell of Kentucky, America, Kentucky, Ukrainian, Susan Collins of Maine, Gaza, Josh Hawley of Missouri, Washington, Russia, Iran

☆ Can America afford two wars? Here’s what the bond market thinks
▼ + stars: | 2023-10-29 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

New York CNN —If you want to aggravate the US bond market, just remind traders how high the nation’s budget deficit is. The latest tally from the Treasury Department for the fiscal year that ended September 30 put the deficit at $1.7 trillion. All else being equal, that tends to push bond prices down, which causes yields to go higher. That suggests there are other factors that may be outweighing the effects of the war that are driving yields higher, said Snyderman. Also, since the debt ceiling was suspended in June, the Treasury has been issuing more bonds to fund government spending, pushing bond prices down.

Persons: it’s, Joe, That’s, shrugged, Lisa Shalett, Janet Yellen, Rachel Snyderman, Biden, ” Snyderman, John Lynch, Israel doesn’t Organizations: New, New York CNN, Treasury Department, Treasury, Morgan Stanley Wealth Management, Bloomberg, Center, CNN, , Congressional, Federal Reserve, Hamas, Fitch, Moody’s, Service, Comerica Wealth Management Locations: New York, Israel, Ukraine, Gaza, United States

Speaking at this week's global finance meeting in Riyadh, HSBC boss Noel Quinn warned of a potential "tipping point on fiscal deficits" for a number of countries across the world. And some analysts fear the uncertainty of next year's funding crush is filtering out the steepening yield curve via the term premium. Term premium at highest in 8 yearsReuters GraphicsCBO long-term US debt and deficit projections'DOOM LOOP'? That's spooky enough, until you start to factor in the recent yield spike and or a return of the term premium to 60-year averages of 150 bp. Tipping point or not, there's a danger the market is starting crystallise the problem it fears most.

Persons: Sukree, Noel Quinn, it's, that's, Stephen Jen, Jen, Goldman Sachs, Jeremy Hunt, Mike Dolan Organizations: HSBC, New York Fed, Federal Reserve, Fed, JPMorgan, Treasury, CBO, Moody's, Reuters Graphics Reuters, Reuters, Thomson Locations: Kasikornbank, Bangkok, Riyadh, U.S, Washington, Europe, Italy

☆ Get Ready for a Short-Lived Economic Boom
▼ + stars: | 2023-10-24 | by ( Stephen Miran | ) www.wsj.com time to read: +1 min

Journal Editorial Report: The week's best and worst from Dan Henninger, Mary O’Grady and Kim Strassel. Images: Reuters/AFP/Getty Images/Bloomberg News Composite: Mark KellyThe Bureau of Economic Analysis will release its third-quarter economic-growth estimate Thursday, and expectations are stratospheric. The Atlanta Federal Reserve suggests gross domestic product might have grown at an annual rate of more than 5%. The answer lies in the unexpected loosening of fiscal and monetary policy in 2023. After taking account of the Biden administration’s unsuccessful attempt to forgive student loans, the deficit unexpectedly doubled this year to about $2 trillion, according to the Congressional Budget Office.

Persons: Dan Henninger, Mary O’Grady, Kim Strassel, Mark Kelly The, Biden Organizations: AFP, Getty, Bloomberg, Atlanta Federal Reserve, Congressional

☆ US budget gap soars to $1.7 trillion, largest outside COVID era
▼ + stars: | 2023-10-20 | by ( David Lawder | ) www.reuters.com time to read: +5 min

The Treasury Department said the deficit was the largest since a COVID-fueled $2.78 trillion gap in 2021. For September, the final month of the fiscal year, the deficit fell to $171 billion from $430 billion in September 2022. The fiscal 2023 deficit would have been $321 billion larger, but was reduced by this amount because the Supreme Court struck down Biden's student loan forgiveness program as unconstitutional. Reuters GraphicsRECORD INTEREST COSTSThe 2023 deficit marks an abrupt end to two years of falling deficits for Biden as COVID-19 spending faded. Fiscal 2023 outlays fell $137 billion, or 2% from the prior year to $6.134 trillion.

Persons: Elizabeth Frantz, Joe Biden's, Biden, Donald Trump, Kevin McCarthy, Biden's, Janet Yellen, Shalanda Young, outlays, Gross, David Lawder, Dan Burns, Andrea Ricci Organizations: U.S, Capitol, REUTERS, Rights, Social Security, Treasury Department, Representatives, . House, Management, Treasury, Reuters Graphics, Federal, Federal Reserve, Thomson Locations: Washington , U.S, Ukraine, Israel, U.S

☆ The US debt mountain is growing so fast the government could soon be spending more on interest payments than on defense
▼ + stars: | 2023-10-20 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The government is likely to spend more on interest payments than on defense over the next five years, per Capital Group. AdvertisementAdvertisementThe US's mountain of debt is growing every day – and the government could soon be spending more on interest payments than on defense, according to Capital Group. "Over the next five years, net interest payments on the debt are expected to surpass defense spending." Capital Economics, Congressional Budget OfficeThe idea that interest payments could soon surpass defense spending could be a source of concern for policymakers, with President Joe Biden pledging Monday to ask Congress for over $100 billion worth of funding to support both Israel and Ukraine. "Slower economic growth also could be expected, given that government spending would need to be re-routed to debt service," he added.

Persons: —, Darrell Spence, Spence, Joe Biden Organizations: Group, Treasury, Service, Capital Group, Congressional, Office, Capital Economics, Federal Reserve Locations: Israel, Ukraine

Oct 18 (Reuters) - An Alaska state agency on Wednesday sued the Biden administration over its decision to cancel oil and gas leases in the state’s North Slope, one of the country's largest reserves of pristine federal land. Interior Department’s Sept. 6 decision to scrap seven oil and gas leases in Alaska’s 19 million-acre (7.7 million-hectare) Arctic National Wildlife Refuge, an area that is acutely vulnerable to climate change and home to grizzly and polar bears, herds of moose and snowy owls. The canceled leases were sold during the waning days of the Trump administration following a decades-long effort by Alaska officials to open up drilling in the refuge and bolster the state's petroleum-reliant economy. The state agency emerged as the sole bidder for most of the acreage after major oil and gas companies chose to skip the sale in 2020, which generated around $14.4 million. The two other entities that won leases at the 2020 sale withdrew from their holdings in 2022.

Persons: ”, Mike Dunleavy, Trump, Clark Mindock, Alexia Garamfalvi, Jamie Freed Organizations: Wednesday, Biden, Washington , D.C, U.S . Interior, Wildlife Refuge, Alaska Industrial Development, Export Authority, U.S, District of Columbia, Republican, U.S . Interior Department, Department, Thomson Locations: Alaska, Washington ,, U.S, Alaska’s, Republican Alaska, North

☆ The numbers are in: Here’s how big your raise is likely to be next year
▼ + stars: | 2023-10-16 | by ( Aki Ito | ) www.businessinsider.com time to read: +5 min

Now it's: How much of a raise can I expect in 2024 if I stay in my current job? Sure — but it may wind up being the biggest boost in purchasing power that workers have gotten in years. If you think you deserve a raise that's higher than the 4% average, pay experts have a few tips. These days, as the hiring frenzy subsides, you're not as likely to get a bigger raise simply by switching companies. Which means that 2024 may be your last, best hope for landing an above-average raise — perhaps for years to come.

Persons: —, That's, it's, David Turetsky, What's, they're, Ruth Thomas, don't, Aaron Terrazas, Aki Ito Organizations: Congressional, Salary.com, Employees Locations: California, Washington, Payscale

☆ How big is your raise likely to be next year? We found out.
▼ + stars: | 2023-10-16 | by ( Aki Ito | ) www.businessinsider.com time to read: +5 min

High funding needs and central banks removing support are increasing pricing uncertainty for investors, Sophia Drossos, hedge fund Point72 Asset Management's chief economist, said. Spending plans lacking credibility were seen as most likely to spark market turmoil. I suspect not by default, but when markets start reflecting their worries in Treasury prices, by a political crisis and a potentially ugly adjustment," the former IMF chief economist said. Italy's 2.4 trillion-euro debt pile is the focus in Europe, where the IMF has said high debt leaves governments vulnerable to crisis. "We need more investment, not less," said King's College London professor Jonathan Portes, Britain's cabinet office chief economist during the financial crisis.

Persons: Andrew Kelly, Peter Praet, Praet, Sophia Drossos, Daniel Ivascyn, Claudio Borio, Olivier Blanchard, Ray Dalio, Janet Yellen's, Yellen, Jim Leaviss, Giancarlo Giorgetti, Daleep Singh, Joe Biden, Britain's, Yellen's, Jonathan Portes, Clare Lombardelli, Moritz Kraemer, Yoruk Bahceli, Maria Martinez, Leigh Thomas, Giuseppe Fonte, Nell Mackenzie, Naomi Rovnick, William Schomberg, Jan Strupczewski, Dan Burns, Elisa Martinuzzi, Riddhima Talwani, Jayaram, Emelia Sithole Organizations: Financial, of, REUTERS, Institute of International Finance, Reuters, European Central Bank, ECB, Bank for International, Peterson Institute for International Economics, Associates, U.S . Treasury, Wall, Economy, Britain's Treasury, Congressional, Britain's, Institution, Reuters Graphics ACT, King's College London, Labour Party, OECD, Graphics, Thomson Locations: of Manhattan , New York City, U.S, Italy, Britain, United States, Europe, Ukraine, Berlin, Paris, Rome, London, Brussels, Washington, Marrakech

High funding needs and central banks removing support are increasing pricing uncertainty for investors, Sophia Drossos, hedge fund Point72 Asset Management's chief economist, said. Spending plans lacking credibility were seen as most likely to spark market turmoil. I suspect not by default, but when markets start reflecting their worries in Treasury prices, by a political crisis and a potentially ugly adjustment," the former IMF chief economist said. "We need more investment, not less," said King's College London professor Jonathan Portes, Britain's cabinet office chief economist during the financial crisis. Not enough reforms are being implemented, OECD chief economist Clare Lombardelli warned.

☆ IMF fiscal chief: U.S., China must rein in debt, face different challenges
▼ + stars: | 2023-10-11 | by ( David Lawder | ) www.reuters.com time to read: +3 min

IMF Director of Fiscal Affairs Vitor Gaspar speaks to reporters at the headquarters of the International Monetary Fund in Washington, U.S., October 12, 2022. Continuing along their projected fiscal paths will ultimately cause difficulties for the world's two largest economies, Gaspar told Reuters in an interview. The U.S. and China are fueling a projected return to higher debt levels after two years of falling debt-to-GDP ratios as a post-COVID growth surge fades. DEFICITS RISINGGaspar said the challenge for the United States was persistently high and growing budget deficits. GROWTH FADESChina faces different challenges, the largest of which is slowing economic growth.

Persons: Vitor Gaspar, James Lawler Duggan, Gaspar, David Lawder, John Stonestreet Organizations: Fiscal, International Monetary Fund, REUTERS, Rights, Monetary Fund Fiscal, Reuters, U.S, Congressional Budget Office, Social, Thomson Locations: Washington , U.S, Rights MARRAKECH, Morocco, U.S, China, United States, Washington

☆ Look to defense, energy, and natural resources for defensive plays, says Michael Cuggino
▼ + stars: | 2023-10-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailLook to defense, energy, and natural resources for defensive plays, says Michael CugginoMichael Cuggino, portfolio manager of the Permanent Portfolio Family of Funds, joins 'The Exchange' to discuss geopolitical risk, growing investor appetite for defensive stocks, divisiveness over the Congressional budget impacting defense spending, and expectations for an ongoing rise in energy prices.

Persons: Michael Cuggino Michael Cuggino

☆ The Biden administration is negotiating lower prices for 10 medications with drug manufacturers
▼ + stars: | 2023-10-04 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +4 min

AdvertisementAdvertisementThe Biden administration announced Tuesday it is beginning talks with drug makers behind 10 expensive medications to lower prices for recipients of Medicare, the national health insurance program for older Americans and people with disability status. The negotiations are expected to last until 2024, with the lower prices expected to go into effect in 2026. The Congressional Budget Office "estimated that price negotiation will lower average drug prices paid by Medicare and will reduce the budget deficit by $25 billion in 2031." "Negotiating provides us a critical tool to ensure they get those prescription drugs at lower prices – just as the U.S. Department of Veterans Affairs has done for years." AdvertisementAdvertisementThe Biden administration has recently taken aim at high drug prices and high profits at pharmaceutical companies.

Persons: —, Biden, Juliette Cubanski, Harris, Xavier Becerra, Jardiance, Eli Lilly Organizations: Service, Congressional, Medicare, Biden, Harris Administration, Human Services, U.S . Department of Veterans Affairs, HHS, Centers, Services

☆ Rising interest rates means the cost of US debt will hit a new peak by 2025, Goldman Sachs says
▼ + stars: | 2023-10-03 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

The cost of servicing the US's pile of debt is on track to hit a new record in 2025, Goldman Sachs said. Total interest payments on the US debt could amount to $10.6 trillion over the next decade, per one analysis. In 2022, it cost the government $476 billion, or around 2% of national GDP to pay the interest on its debt. Interest payments are set to rise to 3% of GDP in 2024, and 4% of GDP by 2030, strategists estimated. The federal debt could make up 181% of GDP by 2053, according to one projection from the Congressional Budget Office.

Persons: Goldman Sachs, —, That's, Peter G, Goldman Organizations: Service, Federal Reserve, Peterson Foundation, Congressional, Office

☆ Something is breaking in financial markets — Here's what's behind the sell-off
▼ + stars: | 2023-10-03 | by ( Jeff Cox | ) www.cnbc.com time to read: +7 min

Brendan McDermid | ReutersThat cracking sound in financial markets isn't the typical kind of break, where one asset class or another fractures and gives way. "The cost of capital is going up, companies are going to have to refinance at a higher rate." That sentiment was buttressed this week, when at least four central bank officials either endorsed hikes or indicated that higher rates would be staying in place for an extended period. Consumers, for one, are feeling the squeeze of higher rates on everything from mortgages to credit cards to personal loans. "Now, at some point, my guess is that markets will eventually get to cheap enough levels where you'll bring buyers in.

Persons: Brendan McDermid, Quincy Krosby, Krosby, Larry McDonald, Treasurys, McDonald, It's, Joseph LaVorgna, LaVorgna, Donald Trump, I've Organizations: New York Stock Exchange, Federal Reserve, Treasury, LPL, Labor Department, Wall, P Bank ETF, Congressional, Treasury Department, The, White House, National Economic Council, Nikko Securities Locations: New York City, Washington, U.S

☆ A government shutdown would be a 'gut punch' to Head Start programs that serve 10,000 low income children
▼ + stars: | 2023-09-30 | by ( Associated Press | ) www.businessinsider.com time to read: +7 min

Head Start programs, which serve over 10,000 children across the nation, would lose funding. If the shutdown isn't averted, Head Start programs serving more than 10,000 children would immediately lose federal funding, including Ferguson's program. This is a particular concern with nearly 20% of Head Start staff positions vacant nationwide, according to the National Head Start Association. The 16-day October 2013 shutdown was the last to hit Head Start hard, affecting 19,000 children and shuttering programs in several states. Laketia Washington, a mother of eight whose 3- and 5-year-olds attend Head Start programs in Tallahassee, Florida, lamented the turmoil as she rang up customers at a discount store.

Persons: —, Monette Ferguson, Ferguson, Tommy Sheridan, Sheridan, Bobby Kogan, Lori Milam, she's, Philip Shelly, Nikki Budzinski, Maureen Coffey, Lynn Karoly, John, Laura Arnold, what's Organizations: Service, Alliance for Community Empowerment, Start Association, Sunday, Center for American Progress, West Virginia, Democratic U.S ., Start, Center for American, Rand Corp, Tim Center, Capital Area Community Action Agency Locations: Connecticut, Florida , Alabama , Connecticut, Georgia , Massachusetts, South Carolina, Illinois, Minnesota , New York, Maine, Houston, Florida, Laketia Washington, Tallahassee , Florida

If the shutdown isn’t averted, Head Start programs serving more than 10,000 children would immediately lose federal funding, including Ferguson's program. That's what worries Lori Milam, executive director of the West Virginia Head Start. This is a particular concern with nearly 20% of Head Start staff positions vacant nationwide, according to the National Head Start Association. Another pot of COVID-19 relief funds that helped Head Start ran out in the spring. Laketia Washington, a mother of eight whose 3- and 5-year-olds attend Head Start programs in Tallahassee, Florida, lamented the turmoil as she rang up customers at a discount store.

Persons: Monette Ferguson, “, ”, Ferguson, Tommy Sheridan, Sheridan, Bobby Kogan, Lori Milam, she's, Philip Shelly, Nikki Budzinski, Maureen Coffey, “ It’s, Lynn Karoly, John, Laura Arnold, what’s Organizations: KANSAS CITY, Alliance for Community Empowerment, Start Association, Sunday, Center for American Progress, West Virginia, Democratic U.S ., Start, Rand Corp, Tim Center, Capital Area Community Action Agency Locations: KANSAS, Mo, Connecticut, Florida , Alabama , Connecticut, Georgia , Massachusetts, South Carolina, Illinois, Minnesota , New York, Maine, Houston, Florida, Laketia Washington, Tallahassee , Florida

It’s a reality that Senate Minority Leader Mitch McConnell called “completely unfair,” as federal workers feel the brunt of lawmakers' inability to agree on a plan to fund the government. A shutdown occurs when Congress can’t pass legislation to fund the government before the start of the fiscal year. The Office of Management and Budget directs each federal agency to create a shutdown contingency plan reviewable on its website that identifies essential workers and services. Government shutdowns have become familiar to many federal workers, with the last shutdown ending in 2019. Other federal employees may hold jobs that are considered essential and may be required to work without pay during a shutdown.

Persons: shutdowns, hasn’t, Matt Gaetz, Joe Biden, Mitch McConnell, Shutdowns haven’t, Benjamin Civiletti Organizations: Management, Budget, Government, Congressional, Postal Service, District of Columbia, Social Security, Transportation Security Administration, White Locations: Florida, furloughs, District

☆ Here's what a government shutdown would mean for your wallet
▼ + stars: | 2023-09-27 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

During a shutdown, the federal government ceases operations that are deemed non-essential. Win Mcnamee | Getty Images News | Getty ImagesIt's poised to occur this year as hard-right conservatives in the Republican-controlled House are using a possible shutdown as leverage to force deep cuts in federal spending. watch nowMillions may also lose certain federal benefits, with that threat increasing with the length of a shutdown, experts said. Food assistance through the Supplemental Nutrition Assistance, or SNAP, program is "on better footing" than WICs, which would likely be affected within days of shutdown, Sprick said. Section 8 housing vouchers, which are for families with low incomes, seniors and people with disabilities, would also be at risk, Sprick said.

Persons: —, Kevin McCarthy, Win Mcnamee, Sprick, Mark Zandi, Zandi, Emerson Sprick Organizations: Bloomberg Creative, Bloomberg, Getty, Republican, Center, Congressional Research Service, Social Security, Congressional, Workers, Moody's, Contractors, Women, Assistance, SNAP, Loans, Small, Administration, U.S . Department of Education, Education, Center Service, Social Security Administration, Travelers, Transportation Security Administration, United Auto Workers Locations: U.S

Goldman Sachs economists have estimated that a shutdown would reduce growth by about 0.2 percentage points for each week it lasts. But the Goldman researchers expect growth to increase by the same amount in the quarter after the shutdown as federal work rebounded and furloughed employees received back pay. That estimate tracks with previous work from economists at the Fed, on Wall Street and prior presidential administrations. Trump administration economists calculated that a monthlong shutdown in 2019 reduced growth by 0.13 percentage points per week. Because growth and confidence tend to snap back, previous shutdowns have left few permanent scars on the economy.

Persons: Gregory Daco, ” Biden, Goldman Sachs, Goldman, Trump Organizations: Administration, shutdowns, Congressional, Office Locations: EY

☆ Medicare's drug-price negotiations will save the government billions in healthcare spending — but patients may not feel the benefits
▼ + stars: | 2023-09-25 | by ( Natalie Rahhal | ) www.businessinsider.com time to read: +6 min

Patients with private health insurance aren't likely to see a drop in costs from the negotiations. Longo said the price-setting provisions will drive research and investment away from treatment options for Medicare patients. If drug companies won't come to the negotiating table to lower drug prices paid by private insurers, those insurers could take the companies' drugs off their lists of covered medications. Or, if private insurance companies don't negotiate drug prices down for their patients, patients in some cases could seek out different insurance. "These are not full solutions, but they are the beginning of cracks in the facade" of drug companies' constant price hikes, Feldman said.

Persons: Biden, Juliette Cubanski, Jeffrey Davis, Davis, Richard Frank, —, Nicole Longo, Longo, it's, — aren't, Robin Feldman, Feldman, Cuban's Organizations: Medicare, Healthcare, Morning, Centers, Services, Congressional, McDermott, Consulting, Brookings Schaeffer Initiative, Health, Pharmaceutical Research, Manufacturers of America, PhRMA, University of California Law School, Costco, Pharmaceutical Locations: Lower

☆ Moody’s: Government shutdown could hurt America’s top credit rating
▼ + stars: | 2023-09-25 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —The United States’ credit rating could come under pressure if the government shuts down, Moody’s Investors Service cautioned Monday. A shutdown would be “credit negative” for the US sovereign, according to a Moody’s note. Moody’s is the only one of the three major credit rating agencies to assign the United States an outstanding rating of AAA. Standard and Poor’s downgraded the United States in 2011, following the debt ceiling standoff then. In August, Fitch Ratings knocked America’s credit rating down to AA+ after the most recent debt ceiling debate.

Persons: “, ” Moody’s, Poor’s, Moody’s, It’s, Donald Trump’s, —, Betsy Klein, Matt Egan Organizations: Minneapolis CNN, United, Moody’s, AAA, Fitch, Congressional, US Travel Association, Federal Reserve, Labor Statistics Locations: Minneapolis, United States

☆ US debt interest payments are unsustainable and flash 'huge warning signs' as they take over federal spending, budget expert warns
▼ + stars: | 2023-09-23 | by ( Filip De Mott | ) www.businessinsider.com time to read: +4 min

The trajectory of US debt interest payments is not sustainable, Maya MacGuineas told Insider. Interest will eclipse defense spending in four years, the Committee for a Responsible Federal Budget president said. By that measure, US debt interest payments will become the single biggest federal expenditure by 2051, when it eclipses Social Security. AdvertisementAdvertisement"So clearly not sustainable," Maya MacGuineas, president of the Committee for a Responsible Federal Budget, told Insider. AdvertisementAdvertisementAt today's level, interest payments already outpace federal spending on youth education, and in four years, it will top defense spending.

Persons: MacGuineas, Janet Yellen, it's Organizations: Federal, Social, Service, CNBC, Congressional, Federal Budget, Treasury Locations: Wall, Silicon

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